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HOME INS. CO. OF ILLINOIS v. ADCO OIL CO.

December 2, 1997

THE HOME INSURANCE COMPANY OF ILLINOIS, Plaintiff, and MICHAEL J. ROVELL, Intervenor-Plaintiff
v.
ADCO OIL COMPANY, Defendant.



The opinion of the court was delivered by: GETTLEMAN

 Plaintiff, The Home Insurance Company of Illinois ("Home"), has filed a complaint *fn1" for declaratory judgment against defendant, Adco Oil Company ("Adco"), alleging that it is not liable to indemnify Adco for Adco's claim against Home's insured, Michael J. Rovell ("Rovell"). Home seeks a judgment declaring that: (1) Rovell breached the Notice of Claims provision of his insurance policy with Home; (2) Home has no duty or obligation to defend Rovell against Adco; and (3) Home be awarded its just and reasonable costs for prosecuting this suit.

 Home and Adco filed motions for summary judgment pursuant to Fed. R. Civ. P. 56. On June 5, 1997, this court issued an opinion in which it denied Home's motion for summary judgment and granted Adco's cross-motion for summary judgment. At that time, Rovell was not a party to the suit. Thereafter, Home filed a motion to reconsider and Rovell filed a petition to intervene and a motion to reconsider. Rovell argues in his petition to intervene that certain factual statements made by the court in its June 5 opinion will damage his reputation. Rovell asserts that the court's statements were based on allegations that were made by Adco, and were not disputed by Home. In light of Rovell's petition to intervene and the motions to reconsider, the court provisionally vacated its June 5 opinion and order.

 The court hereby grants Rovell's petition to intervene for the sole purpose of clarifying certain factual statements made by the court in its June 5 opinion regarding Rovell's behavior. Rovell is not being permitted to intervene in order to address the merits of the instant dispute between Home and Adco. For the reasons set forth below, this court denies Home's motion to reconsider, denies Rovell's motion to reconsider, denies Home's motion for summary judgment, and grants Adco's cross-motion for summary judgment.

 FACTS

 Home issued its insurance policy No. CPL-C106252 to Rovell, a lawyer, as the insured party. The policy was effective from April 1, 1994, to April 1, 1995. The policy sets for the scope of coverage, in pertinent part, as follows:

 
I. Professional Liability and Claims-Made Clause :

 Home's "policy period," as used in the insuring agreement, is defined as follows:

 
"Policy Period," whenever used in this policy, means the period from the inception date of this policy to the policy expiration date as set forth in the Declarations or its earlier termination date, if any.

 Section "F" of the Policy reads in pertinent part:

 
I. Notice of Claims : As a condition precedent to the right to the protection afforded by this insurance, the Insured shall, as soon as practicable, give to the Company written notice of any claim made against the Insured.
 
In the event suit is brought against the Insured, the Insured shall immediately forward to the Company every demand notice, summons, or other process received directly or by the Insured's representatives.

 On October 21, 1994, Adco filed an action against Rovell in the United States District Court for the Western District of Oklahoma alleging malpractice (the "Adco malpractice action"). According to the malpractice complaint, Rovell intentionally and negligently breached his duties to Adco, causing millions of ...


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